Business news from Ukraine

Business news from Ukraine

UKRAINIAN, SLOVENIAN PRESIDENTS DISCUSS UKRAINE’S EU INTEGRATION, REFORMS TO IMPROVE BUSINESS CLIMATE

KYIV. Nov 17 (Interfax-Ukraine) – President of Ukraine Petro Poroshenko and President of Slovenia Borut Pahor have met and discussed Ukraine’s EU integration and the ongoing reforms to improve the business climate and fight corruption in the country, the Ukrainian presidential press service has reported.

“The parties discussed the issue of the European integration of Ukraine and the course of reforms aimed at improving the business climate and to fight against corruption. The president expressed gratitude for the support of Ukraine’s efforts in the introduction of the visa-free regime with the EU as a result of the fulfillment of the program of reforms,” the press service said.

During their meeting, the presidents paid special attention to the security situation in Europe, particularly in the context of recent terrorist attacks in Paris.

“Our position is absolutely clear – we are together with the French nation, we stand side-by-side with them in the struggle against terrorism, we are grateful to France for its powerful support for Ukraine. Today, the whole world must make decisive efforts to prevent the repeat of terrorist attacks. Such victims in the center of Europe in the twenty-first century are inadmissible. The entire world should unite against terrorism wherever it may take place – either in Paris, or in the east of Ukraine,” Poroshenko said.

The Ukrainian president informed his Slovenian counterpart about the situation in the east of Ukraine and emphasized that the recent events in Donbas are evidence of Russia’s non-fulfillment of the Minsk agreements. Poroshenko noted the necessity of clear coordination with the EU regarding sanctions.

Poroshenko expressed gratitude for the assistance of Slovenian for Ukrainians who suffered as a result of the Russian aggression in Donbas. Already, 120 Ukrainian children have rested on the shore of the Adriatic Sea this year. Slovenia has also funded the rehabilitation of four Ukrainian servicemen wounded in fighting in Donbas.

Poroshenko accepted the invitation of his counterpart to visit Slovenia in the first half of 2016, adding that they could discuss the abolition of visa fees for Ukrainians who go to Slovenia to study.

Speaking about the situation in Donbas, Pahor highlighted the importance of full implementation of the Minsk agreements.

“The EU should support Ukraine. It is in the interests of the EU,” he said.

SANOFI IN UKRAINE COULD RETURN TO REALIZATION OF PRODUCTION LOCALIZATION INVESTMENT PROJECTS IN 2016

KYIV. Nov 16 (Interfax-Ukraine) – Sanofi international pharmaceutical company could return to the realization of production localization investment projects in 2016, Sanofi CEO for Ukraine and Belarus Jean-Paul Scheuer has said.

“Ukraine will become more attractive for investors. In particular, we started investing in the country and the production of four our medicines was localized. Despite the fact that in the past 18 months we slightly suspended the projects, we plan to return to them. We hope that in 2016,” he said in an interview with Interfax-Ukraine.

Sanofi focuses on solutions for diabetes, human vaccines, innovative drugs, consumer health care, emerging markets, animal health, and is also engaged in the development and implementation of advanced technologies for the treatment of life-threatening diseases.

 

PIVDENNE DESIGN BUREAU, PIVDENMASH AGREE TO PREPARE FOR GRADUAL CREATION OF UNTIED STRUCTURE

KYIV. Nov 16 (Interfax-Ukraine) – Pivdenne design bureau and the Makarov Pivdenny Machine Building Plant (Pivdenmash, both based in Dnipropetrovsk) have started their preparations for the creation of a united structure.

Sources in the rocket and space sector told Interfax-Ukraine that the unification plans are stipulated in the agreement of cooperation on the stable development of Pivdenne design bureau and Pivdenmash.

According to the agreement, it is aimed at overcoming the crisis at Pivdenmash via the gradual unification of the enterprises.

Pivdenne design bureau is actively operating on the international market and has a large portfolio of current and promising contracts, which could additionally load Pivdenmash.

The measures included in the agreement are the joint design of a program on optimization and top-priority modernization of the production and experimental base of Pivdenmash, taking into account the existing infrastructure of Pivdenne design bureau.

The sides agreed to cooperate on the creation of pilot production at Pivdenne design bureau and realize pilot programs for new samples of rockets and spacecraft using Pivdenmash’s facilities. The sides will agree to the transfer of Pivdenmash’s facilities that are not on the balance sheet of Pivdenne design bureau or under the leasing conditions.

 

ANTONOV SIGNS MEMOS ON PROMOTIONS OF PRODUCTS TO SAUDI ARABIAN MARKET WITH TAQNIA AERONAUTICS

KYIV. Nov 16 (Interfax-Ukraine) – Antonov State Enterprise and Taqnia Aeronautics on November 12, 2015 signed two memorandums of understanding at the Dubai Airshow 2015 to promote four An−148−100EM medical aircraft, four ISR (intelligence search and rescue) and two Jamming versions of the An−132 aircraft in the Saudi Arabian market.

“Cooperation with Saudi Arabia is very important for us. Our experience, which we are gaining together on fitting the AN−132 with Western engines and avionics, should be continued on other modern Antonov aircraft including the An−148, An−158 and An−178 aircraft,” Antonov said in a press release, citing its head Mykhailo Hvozdev.

Taqnia Aeronautics President Ali Mohammed Al-Ghamdi said that there is demand for An−132, An−148−100EM and An−178 aircraft in Saudi Arabia.

“Promotion of new versions of the An−132 will assist us in study of the potential customers’ requirements for ISR and Jamming aircraft,” he said.

“Also we are starting work with Antonov Company on the composite and metallic materials to develop technical cooperation,” he said.

The company said that the memos were signed in the presence of Prince Turki bin Saud Mohammed Al−Saud and the president of KACST (King Abdulaziz City for Science and Technology).

During the exhibition, Antonov’s stand was visited by other official representatives of Saudi Arabia, including Saudi Air Force, Ministry of Defense, Ministry of National Guard, and Medevac delegations.

The prince drew attention to the advanced program of development and construction of new light transport An−132 aircraft which is being utilized jointly by Antonov, KACST and Taqnia Aeronautics company with participation of aerospace industry leaders.

GPA PARTICIPANTS UNANIMOUSLY SUPPORT UKRAINE’S APPLICATION TO JOIN THEM – OFFICIAL

KYIV. Nov 16 (Interfax-Ukraine) – The participants of the Agreement on Government Procurement (GPA) unanimously supported Ukraine’s application to join the agreement, Deputy Economic Development and Trade Minister of Ukraine Maksym Nefyodov wrote on his Facebook page.

“This is the diplomatic victory of Ukraine – to join the agreement under the WTO [World Trade Organization], which opens mutual access to the public procurement markets,” he wrote.

He said that joining GPA is beneficial for Ukraine, as the Ukrainian market has been opened for foreign companies for many years, while the markets of other countries were closed for Ukrainian companies. He said that Ukraine does not require changing legislation to receive access to tenders abroad.

BUSINESS COMMUNITY AND AUTHORITIES DEVELOP BAILOUT PLAN FOR UKRAINIAN ECONOMY

Organizations of industrialists, entrepreneurs, employers of Ukraine, scientific institutions, civil society activists, who have formed the Anti-Crisis Council of NGOs, are ready to introduce their fundamental document ‒ the anti-crisis program of joint actions of the government and businesses ‒ to the European community. It will be presented to participants in an international conference entitled “The European Parliament is the Civil Society of Ukraine” in Brussels in early December.

A year ago, business organizations and associations, having realized the depth of the social crisis in the country, decided to combine their efforts to implement effective anti-crisis measures for industrial development and create a favorable business and investment climate. The said program covers all areas of social and economic development in the country, its cooperation with international partners, demands of society, existing resources and competitive advantages. The program is a public document and is being constantly updated simultaneously with developments of the situation and in line with new proposals that come from the business community.

The entrepreneurial community is convinced that the most important task today is to pursue a modern industrial policy. Nowadays Ukraine has seen signs of de-industrialization, when large factories and even entire industries, such as the titan of the aerospace industry, Pivdenmash, and transport engineering enterprises, are on the verge of closure. For example, the State Rail Transport Administration, also known as Ukrzaliznytsia, is facing the following problem: 92% of its locomotives and 83% of its passenger cars are old. At the same time, the domestic transport engineering sector has posted a decline in production at about 80%. Isn’t that time to launch large-scale state-supported programs for the modernization of railway rolling stock, support unique, skilled personnel, strengthen the positions of the domestic market and to gradually enter new markets?

The anti-crisis program of joint actions of the government and businesses features the creation of favorable conditions for small- and medium-sized businesses, which are key to economic stability. Industrialists demand resumption of issuing loans to the real economy at affordable rates, reduction in the administrative and fiscal burden on businesses, and the quick adoption of high-quality tax reform. They also insist on the rapid search for new markets to sell Ukrainian products and lifting of restrictions on imports and exports.

Separate sections are devoted to preparation for successful entry to the EU market as of January 1, 2016, which requires the development and launch of programs for adaptation of technical regulations and standards of Ukraine to EU requirements.

The anti-crisis program stresses that every effort must be made to combat corruption. Every corrupt official should be made liable ‒ regardless of status, position, political affiliation, as all are equal before the law. At the same time, the public and the business community should facilitate the rejection of corruption.

The anti-crisis program of joint actions of the government and businesses calls on the authorities to a productive partnership with the business community. Only by joining hands it is possible to overcome the crisis and achieve sustainable economic development, the industrialists and entrepreneurs emphasize.